Caixa dismisses three vice-presidents and reinstates one of them.

The Board of Directors of Caixa Econômica Federal decided in a meeting this Tuesday to remove three of the four vice-presidents who were suspended from their positions following an investigation by the Federal Public Prosecutor's Office. The decision affects Antônio Carlos Ferreira (Corporate), Roberto Derziê de Sant'Anna (Government) and Deusdina dos Reis Pereira (Government Funds and Lotteries).

The suspended fourth vice-president, José Henrique Marques da Cruz (Clients, Business and Digital Transformation), has been reinstated. According to Caixa, he was reinstated due to "the finding, in internal and independent investigations, of a lack of sufficient evidence to establish his responsibility."

The request to remove the executives was made in December by the Federal Public Prosecutor's Office. But Temer had been refusing to comply with the recommendation of the Public Prosecutor's Office and only ordered their removal last week.

The Caixa Board also decided that all twelve vice-presidents will be selected through a competitive process. A specialized company will be hired to initiate the process, which should take place within the next twelve months.

According to Caixa, the first stage of the selection process will cover the Corporate, Government, Government Funds and Lotteries, and Administration and Management of Third-Party Assets vice-presidencies. (With Veja.com )

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Note from the box: Efficiency and Capital

Caixa Econômica Federal informs that it approved, through its Board of Directors, this Tuesday (23), the update of the bank's capital contingency plan. This update allows the institution to ensure compliance with the regulatory and prudential requirements foreseen in the Basel III Agreement for the years 2018 and 2019.

CAIXA has been implementing measures aimed at greater efficiency and capital optimization. The bank has reduced expenses, adjusted capital allocation processes, improved loan portfolio management using the Risk-Adjusted Return on Capital (RAROC) strategy, increased the contribution margin of its products and services, adjusted post-employment benefits to address actuarial liabilities, and disseminated a risk culture, among other actions. The adjustment process is continuous and permanent, as foreseen in CAIXA's new Strategic Plan.

The capital contingency plan has been implemented since the beginning of 2017 with the adoption of measures to strengthen corporate governance and the management of the capital structure. Among the measures foreseen in the plan, the following stand out: the recapitalization by the National Treasury of dividends to be paid by CAIXA relating to the fiscal years 2017 and 2018; the issuance of perpetual debt instruments (Tier 1 capital) in the international market; and the securitization and sale of credit portfolios without risk retention.

With the updated plan, CAIXA ensures compliance with its 2018 planning, including the budget allocated for affordable housing, without the need to issue a debt instrument with the FGTS (Brazilian Severance Indemnity Fund).

Application of the new CAIXA Statute

Caixa Econômica Federal, through its Board of Directors, has decided to immediately begin a competitive selection process, with the support of a specialized company, for all vice-president positions, in accordance with the terms set out in the bank's new bylaws. This selection process will take place over the next 12 months.

As foreseen in item II of article 142 of Law 6.404/76, in Law 13.303/16, regulated by Presidential Decree 8.945/16, and by virtue of the attribution of competence by the new CAIXA Statute (item XVI of article 25), it was decided to dismiss at will the Corporate Vice-President, Antônio Carlos Ferreira; the Government Vice-President, Roberto Derziê de Sant'Anna; and the Government Funds and Lotteries Vice-President, Deusdina dos Reis Pereira.

It was also decided to reinstate the Vice President of Clients, Business and Digital Transformation, José Henrique Marques da Cruz, due to the finding, in internal and independent investigations, of insufficient evidence to establish his responsibility.

The first stage of the selection process will cover the vice-presidencies of Corporate; Government; Government Funds and Lotteries; and Administration and Management of Third-Party Assets.

The start of the process to hire a specialized company to review CAIXA's organizational structure was also approved. (CAIXA Press Office)